Analyst Identifies Bitcoin Liquidity Pools You Should Be Aware Of in July

Cryptocurrency analyst Zen has released a critical assessment of different scenarios expected for the price of Bitcoin in July. Bitcoin’s price performance in June has undoubtedly left many investors disappointed. This is because cryptocurrency practically traded in decline throughout the month, dropping below US$60,000 at some point. As the unfavorable price continues to develop, cryptocurrency analyst Zen has flagged some large liquidity pools that could determine Bitcoin result in July and the next few months in the fall.

Analyst Highlights Potential Bitcoin Liquidity Pools

As previously mentioned, the recent price decline saw Bitcoin fall below $60,000 earlier in the week. Notably, Zen noted that this collapse represented liquidity clearing below $60,630, which is in line with a previous price analysis. Although Bitcoin has since recovered and returned above $60,600, Zen noted that the liquidity clearing suggests that there is still an additional risk of Bitcoin falling back to $60,150 in the near term.

Furthermore, the analyst highlighted a number of other liquidity price points that can be used to gauge momentum in July. Interestingly, these liquidity points ultimately serve as support and resistance areas. In the event of a continued decline, Zen’s analysis points to liquidity pools at $60,260, $59,440, $58,990, and $56,850. Large transactions by large holders at these points could cause significant price movements. A clearing of these pools could spell trouble for investor sentiment, which in turn could eventually cause Bitcoin to drop to $53,000.

“Will it drop to ~53k at some point? This move makes sense in the Month-to-Month timeframe, but it doesn’t have to happen,” Zen said. On the upside, Zen noted liquidity pools at $61,540, $62,540, $63,260, and $64,920.

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Furthermore, Zen highlighted that Bitcoin is portraying contrasting scenarios in different time periods. On the daily chart, Bitcoin is clearly in a downtrend. Each hop is being sold, indicating that the bears have control of short-term momentum. On the other hand, the weekly candle timeframe highlights how Bitcoin is effectively stuck in a choppy sideways range right now.

Every rally fades, but every dip also attracts buying and accumulation interest. Finally, despite the recent price decline, Zen’s analysis indicates that the marketThe trend remains intact in the monthly candle period.

What to expect from BTC price

At the time of writing, Bitcoin is trading at $60,765. According to Zen, an upcoming week above $60,622 will increase the chances of a Bitcoin price rally in July. Conversely, a close below $59,600 will maintain bearish momentum.

Bitcoin has a pretty solid track record in the seventh month. Most of the time, July registered green candles for BTC. This historical trend could have Bitcoin eyeing potential upside, especially if bulls manage to break through liquidity levels on the upside.

BTC price rises to $61,000 | Source: BTCUSD on Tradingview.com

Featured image created with Dall.E, chart from Tradingview.com

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